Warning when installing AX 2012 R3 Application hotfix: The model store you selected requires a newer version of the installer than the one you’re using.

Scenario:
When you try to install a single Microsoft Dynamics AX 2012 R3 Application hotfix you may sometime experience the following warning; and installation will not proceed further:

The model store you selected requires a newer version of the installer than the one you’re using.

The latest version of the update installer can be downloaded from http://go.microsoft.com/fwlink/?LinkId=393946

This warning may be raised when:
– your system has a mix of application fixes installed with build 6.3.164.x and/or 6.3.1000.x/6.3.2000.x/6.3.3000.x
– you have kernel build 6.3.1000.x and above installed and the application hotfix you are installing is build 6.3.164.x
(There may be other plausible combinations that raise the same warning)

To resolve this:
– you need to download the new axupdate installer from LCS and use that to download and install a fix package containing the fix required. For further details review the following web links:

Also on same page under “Choose an update scenario” – see further links under scenario “Apply a single update to AX 2012 R3”Sample steps:

For, example, here are sample steps I took to download and install application hotfix KB2960996 (build 6.3.164.2248) on a test machine.

IMPORTANT NOTE: This steps can be used to download any single or group of AX 2012 R3 application hotfixes included in Cumulative Update 10 or later even if you are not experiencing the error mentioned in the above scenario.